NEW DELHI: The government will sell a 15% stake in construction company NBCC (India) Limited to raise around Rs 2,218 crore through a two-day offer for sale beginning today.

The government has set a floor price of Rs 246.50 per share, less than NBCC's closing price of Rs 253 on the BSE on Wednesday.

The open offer to sell as many as 9 crore shares will open for institutional investors today, while retail sales will get a chance to make a bid on Friday.

The central government holds 90% stake in National Buildings Construction Corporation Ltd. It diluted 10% stake in the company to raise Rs 127 crore in 2012 when it was listed on the bourses.

"20% of the offer size shall be reserved for retail investors subject to the receipt of valid bids," the offer for sale notice said.

Retail investors, or those individual investors who place bids for shares of total value of not more than Rs 2 lakh in total, will be allocated shares at a discount of 5% of the cut-off price.

"Any unsubscribed portion of the retail category shall, after allotment, be eligible for allocation to the unallotted bids of such non-retail investors who have chosen to carry forward their bids to Friday," the notice added.

The Cabinet committee on economic affairs chaired by Prime Minister Narendra Modi had approved 15% stake sale in the state-owned company on July 13.

The stake sale will help the company meet Securities and Exchange Board of India (Sebi) norms that mandated public sector units (PSUs) to have a minimum public holding of 25%.

In March this year, the board had approved splitting of company's equity share of face value of Rs 10 each into five shares of Rs 2 face value each to make shares more affordable as well as increasing market liquidity.

The government has set a disinvestment target of Rs 56,500 crore in state-owned enterprises in financial year 2016-17, out of which Rs 36,000 crore is expected to come from minority stake sale in state-owned companies, and Rs 20,500 crore from strategic sales.

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